Wholesale and Retail Trade

 

 

https://sm.asisonline.org/Pages/The-Most-Resilient-Countries-in-the-World.aspxThe Most Resilient Countries in the WorldGP0|#28ae3eb9-d865-484b-ac9f-3dfacb4ce997;L0|#028ae3eb9-d865-484b-ac9f-3dfacb4ce997|Strategic Security;GTSet|#8accba12-4830-47cd-9299-2b34a43444652017-05-11T04:00:00Zhttps://adminsm.asisonline.org/pages/lilly-chapa.aspx, Lilly Chapa<p>​Property loss prevention consultant FM Global released its <a href="http://www.fmglobal.com/research-and-resources/tools-and-resources/resilienceindex/explore-the-data/?&sn=1" target="_blank">fifth annual <em>Resilience Index</em></a><em>,</em> which ranks 130 countries on their enterprise resilience to disruptive events. The ranking is data-driven and assesses categories such as economic factors, risk quality, and supply chain. It allows executives to plan supply chain and expansion strategies based on insight regarding risks and opportunities, according to the FM Global website. </p><p>Giving a nod to new trends that affect supply chain resilience, FM Global introduced three new drivers of resilience to its assessment: supply chain visibility, urbanization rate, and inherent cyber risk. Supply chain visibility addresses the ease of tracking goods across a country’s supply chain. “The more visible and robust the supply chain and the faster it can begin functioning as normal following a major local event, the greater its resilience,” the report notes.</p><p>The urbanization rate is based on the percentage of the country’s population that lives in urban areas. While urbanization is typically associated with a country’s development, it can prove to be risky in an area with high natural hazards. And rapid and unplanned urbanization can create pressure on utilities and infrastructure, which can be a significant threat to the country’s resilience, according to the report.</p><p>2017 is also the first year that the threat of cyberattacks has been acknowledged in the report. The inherent cyber risk driver is defined as “a blend of a country’s vulnerability to cyberattack, combined equally with the country’s ability to recover.” This is calculated by determining the percentage of citizens with access to the Internet, as well as how the government responds to cyberattacks. “Countries that recover well from major events are those with a thriving industry in malware or cybersecurity, and where governments are willing to step in and help citizens in the event of a nationwide hacking,” the report says.</p><p>At the top of the list for the fifth year is Switzerland, an “acknowledged area of stability for generations” with infrastructure and political stability that makes its supply chain reliable and resilient. However, natural disasters and cyberattacks remain a threat to the country. </p><p>Also notable is Luxembourg, which was ranked eighth in 2013 but placed second this year. A growth in the country’s services sector, combined with its reduced economic reliance on oil and its business-friendly regulations, makes Luxembourg a safe place to expand operations to, the report finds. And due to its location, Luxembourg may serve as a new home for companies following the United Kingdom’s departure from the European Union.</p><p>At the other end of the spectrum, Haiti is ranked last due to its lack of supply chain and standards and its high rate of poverty. Similarly, Venezuela fared poorly due to corruption, natural disasters, poor infrastructure, and ill-perceived quality of local suppliers.  ​</p>

Wholesale and Retail Trade

 

 

https://sm.asisonline.org/Pages/The-Most-Resilient-Countries-in-the-World.aspx2017-05-11T04:00:00ZThe Most Resilient Countries in the World
https://sm.asisonline.org/Pages/Redefining-Loss.aspx2017-04-01T04:00:00ZRedefining Loss
https://sm.asisonline.org/Pages/Surveillance-and-Stereotypes.aspx2017-04-01T04:00:00ZSurveillance and Stereotypes
https://sm.asisonline.org/Pages/Crime-of-Opportunity.aspx2016-12-01T05:00:00ZCrime of Opportunity
https://sm.asisonline.org/Pages/Book-Review---Supply-Chain-Risk.aspx2016-10-01T04:00:00ZBook Review: Supply Chain Risk
https://sm.asisonline.org/Pages/Six-Food-Defense-Changes.aspx2016-06-01T04:00:00ZSix Food Defense Changes
https://sm.asisonline.org/Pages/Safety-at-Sea.aspx2015-07-20T04:00:00ZSafety at Sea
https://sm.asisonline.org/Pages/Surveillance-for-Security-and-Beyond.aspx2015-06-15T04:00:00ZSurveillance for Security and Beyond
https://sm.asisonline.org/Pages/Strategic-Shrink-Reduction.aspx2015-02-01T05:00:00ZStrategic Shrink Reduction
https://sm.asisonline.org/Pages/Chain-Reaction.aspx2015-01-01T05:00:00ZChain Reaction
https://sm.asisonline.org/Pages/Retail-Theft-Inc.aspx2014-10-01T04:00:00ZRetail Theft, Inc.
https://sm.asisonline.org/Pages/the-intelligence-triangle.aspx2014-09-01T04:00:00ZThe Intelligence Triangle
https://sm.asisonline.org/Pages/target-breach-offers-protection-lessons-0013247.aspx2014-04-01T04:00:00ZTarget Breach Offers Protection Lessons
https://sm.asisonline.org/Pages/fighting-counterfeiters-during-holiday-season-0013014.aspx2013-12-20T05:00:00ZFighting Counterfeiters During the Holiday Season
https://sm.asisonline.org/Pages/Shutting-Down-Retail-Theft.aspx2013-11-01T04:00:00ZShutting Down Retail Theft
https://sm.asisonline.org/Pages/loss-prevention-0012628.aspx2013-08-01T04:00:00ZGlobal Retail Crime and Loss Prevention Trends
https://sm.asisonline.org/Pages/asis-2012-seminar-showcase-0011133.aspx2012-12-03T05:00:00ZASIS 2012 Seminar Showcase
https://sm.asisonline.org/Pages/A-Wrinkle-in-Time.aspx2012-08-01T04:00:00ZA Wrinkle in Time
https://sm.asisonline.org/Pages/supply-chain-security-009867.aspx2012-06-01T04:00:00ZSupply Chain Security
https://sm.asisonline.org/Pages/Teaming-Up-on-Loss-Prevention.aspx2012-04-01T04:00:00ZTeaming Up on Loss Prevention

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https://sm.asisonline.org/Pages/Maturity--Model-101.aspxMaturity Model 101<div><p>​</p><p><img src="/ASIS%20SM%20Documents/1216%20Sidebar%20Graphic%202a.jpg" class="ms-rtePosition-2" alt="" style="margin:5px;width:356px;" /><br></p><p>Maturity models are a tool used a range of business sectors, including​ manufacturing, software engineering, operations, and logistics. The model is often used to help set process improvement objectives and priorities, and it can provide a method for appraising the state of an organization’s current practices. </p></div><p>Researchers at Carnegie Mellon University (CMU) have been developing early maturity model prototypes since the 1980s. In 2002, CMU released the first version of the Capability Maturity Model Integration (CMMI) tool, which was developed by a group of experts from industry, govern­ment, and CMU’s Software Engineering Institute. Updated versions of the tool were released in 2006 and 2010. </p><p>The Ernst & Young (EY) physical security maturity model developed with Caterpillar is based on this CMMI tool, and also on EY’s cybersecurity maturity model.</p><p>This tool uses a level 1 through 5 rating scale to define maturity levels: (1) Initial, (2) Repeatable, (3) Defined, (4) Managed, and (5) Optimized. For a hypothetical example, take the compliance component of a security department. In the Initial stage of a maturity model, processes are unpredictable, poorly controlled, and reactive. Thus, in that initial stage, the security department is conducting its compliance activities in a haphazard way—putting out fires when they flare, with no real established process for doing so. ​</p><p>When compliance reaches level 3, Defined, the compliance process is established and proactive—perhaps with guidelines enforced by a compliance officer. At level 5, Optimized, the process is so well-established, managed, and defined, that the focus is now on process improvements.  </p><p>​​</p>GP0|#28ae3eb9-d865-484b-ac9f-3dfacb4ce997;L0|#028ae3eb9-d865-484b-ac9f-3dfacb4ce997|Strategic Security;GTSet|#8accba12-4830-47cd-9299-2b34a4344465
https://sm.asisonline.org/Pages/Message-to-the-Masses.aspxMessage to the Masses<p>Sanofi is a global pharmaceuticals business that manufactures and distributes vaccines and medications worldwide. The organization provides diabetes solutions, consumer healthcare services, animal health products, and other therapies. Sanofi Pasteur, the vaccines division of Sanofi, provides more than 1 billion doses of vaccines each year, which immunize more than 500 million people across the globe.<img src="/ASIS%20SM%20Callout%20Images/0317%20Case%20Study%20Stats%20Sidebar.jpg" class="ms-rtePosition-2" alt="" style="margin:5px;width:296px;" /></p><p>With more than 100 locations in the United States, Sanofi has approximately 25,000 employees domestically, and a global workforce of more than 125,000. Keeping track of those workers and ensuring their safety is of utmost concern to the company, says Joe Blakeslee, security systems manager at Sanofi. </p><p>For its North American sector, the organization incorporates several solutions as part of its overall security profile, including access control, CCTV, and emergency notification. For many years, Sanofi had several mass notification platforms that were disparate, without a centralized way to manage alerts for all employees. </p><p>In late 2014, Sanofi put out a request for proposal to find a product that could unify its many mass notification platforms into one seamless solution. Near the beginning of 2015, it chose Everbridge Mass Notification, a Web-based application that allows for distribution of messages to a large audience. </p><p>“The biggest part about Everbridge that stood out was the user interface,” Blakeslee says. “It provided everything we needed, and we were also impressed with how easy the system was to use.” The Sanofi North America security team started rolling out the application at the beginning of 2015 for internal security purposes, and in June of that year began registering all North American employees into the system.</p><p>He adds that the variety of options for reaching employees was paramount, given Sanofi’s mobile workforce. “Everbridge has multiple modalities in which you can actually send the message,” he says. “We use all the modalities whether it’s cell phone, SMS, home phone, or email. We give all of our employees the ability to elect whatever modality they would like.” Employees rank their preferred communication modalities in order when registering for the system; that way, if one method fails to contact the worker, notifications will automatically be sent via other methods until the party is reached.  </p><p>Everbridge is used on a daily basis at Sanofi, he adds. “Every day we use the application to alert various groups within the company, whether it’s related to fire alarms, evacuations, hazmat response, or other incidents.” </p><p>Sanofi has a central security services center (SSC). There, analysts monitor the business locations across the country for alarms and alerts using various security management software. Only designated individuals within the SSC can access the Everbridge platform and administrate messages through the platform. When there is an incident, such as a fire alarm, analysts send out alerts to the affected employees to give them situational awareness through the Everbridge Web portal. In the fire example, employees would be alerted to evacuate the building and await further instruction. The messages being sent can be selected from a set of prewritten options, or modified based on the particular event; normally in an emergency, the messages are written at the time by the security team. </p><p>“Say you have a building with 3,000 people in it. We want to reach them wherever they may be,” he says, “and reach as many people as we can in as little amount of time as possible.” </p><p>The Everbridge application is used to notify workers that it is safe to return to their desks. It also displays in real-time the status of employees involved in the incident. Employee status can either be confirmed or unconfirmed. If someone is unconfirmed, the Everbridge system allows the SCC to resend the message or try a new contact path based on the order of the employee’s preferred contact methods to try to get a response. For example, if sending an SMS to a cell phone doesn’t work, the system will make a telephone call, then send an email, and so forth. The confirmation lets the security team determine which employees are safe. </p><p>The system helps get employees back to work more quickly, because people aren’t wondering whether it’s safe to return to their desks. </p><p>Everbridge can also be used for incident management. For example, in the case of a trespasser, security would get an alarm or a phone call. “From there, SSC would send out a notification from Everbridge to the local emergency response personnel, asking for them to respond to the occurrence,” Blakeslee says. “After the message is sent to all the recipients’ devices, the SSC would, in real time, monitor the responses from the recipients’ confirmations and determine how many people are responding to the event.” </p><p>Everbridge isn’t just used for reactionary purposes. It provides proactive security measures as well. Sanofi has security officers at each of its locations, and the organization conducts daily check-ins with those personnel who are patrolling alone to ensure they are safe and accounted for. Sanofi expects a message back, and “if they don’t respond, we escalate that to the SSC and they handle it from there,” Blakeslee says.  </p><p>He adds that the mobile nature of the modern workforce means that employees won’t always be working from their primary location. “Our workforce is dynamic. One day I may be working in Pennsylvania, the next day I might be in New Jersey,” he says, noting that several employees and contractors travel frequently. To help keep track of its mobile workforce, Sanofi rolled out a newer feature from Everbridge called Safety Connection in the second quarter of 2016. 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https://sm.asisonline.org/Pages/Teaming-Up-on-Loss-Prevention.aspxTeaming Up on Loss Prevention<p>​</p><p>THE GREAT RECESSION HAS HIT MERCHANTS HARD. The U.S. Department of Labor estimates that more than a million retail positions have been lost and a significant portion of those jobs are not expected to return. With retailers suffering staff reductions at both stores and corporate headquarters, one of the biggest challenges for retail loss prevention (LP) departments is halting operational breakdowns that lead to loss. One way of doing so is through the creation and deployment of special in-store loss prevention/asset protection teams.</p><p>In an ideal retail environment, after inventory is acquired for sale and displayed, it is all sold and none of it is returned. That, of course, is not the reality. Out of any given inventory, some items are returned, others lost, damaged, or stolen. That’s known as “shrink,” and it is on the rise. According to the Global Retail Theft Barometer, an annual study underwritten by an independent grant from Checkpoint Systems, the global shrink rate increased by 6.6 percent when comparing 2010 to 2011.</p><p>One factor in the increasing percentage of shrink is the loss of experienced personnel who are knowledgeable about operations and procedures that can prevent problems that result in shrinkage. These workers are the front lines of a loss prevention/asset protection program. At the store level, for example, operational breakdowns from lack of experienced personnel take place across the spectrum of operations, leading to receiving errors, incorrect pricing of new goods or of merchandise slated for markdown, improper storage that results in damage to goods, unrotated perishable or expired items, and cash-handling laxities.</p><p>At the corporate level, similar personnel losses can lead to an absence of LP programs or the implementation of poorly designed and inadequate programs. The results can be catastrophic, causing wasted labor as well as unrecoverable losses that can spell the end of a business altogether.</p><p>The latter is not a baseless doomsday warning: in my capacity as the president and CEO of a retail LP consultancy, after having served for many years in retail LP with major multinational companies, I have seen retailers suffer these consequences, including two companies with more than 845 locations in 48 U.S. states.</p><p>Team LP<br>Companies may not be able to avoid personnel cutbacks or turnover, but they can mitigate the damage to the loss prevention program. One tested way to prevent the breakdown of LP processes after the loss of key personnel is to set up teams dedicated and trained to focus on LP and safety to help ensure that the locations are doing everything they can to limit loss from shrink and risk management exposures.</p><p>Like any good retail strategy, the LP team must have executive buy-in if it is to succeed. Unless this upper-level support is clearly communicated, and time budgeted, store managers will remain unconvinced that they should devote time and other resources to the team’s activities.</p><p>If the company’s head of LP is trying to sell such a program, part of getting corporate approval will be to provide return-on-investment data to company executives as well as the expected outcomes. In my experience, companies that institute these LP teams see a minimum of 10 to 20 percent reduction in shrink and accident costs per store. The cost of the team can be calculated by combining the time dedicated by each hourly associate and any ancillary costs. These ancillary costs can include items such as the cost of purchasing or developing training tools or of purchasing appreciation gifts to be used in a rewards program.</p><p>Set parameters. 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This could be a hotline or LP department contact person.</p><p>Some of my retail clients have chosen to implement teams that not only deal with LP but also with safety and risk management issues, including general-liability risk factors and associate safety and accident review. If safety is to be incorporated, all of the team’s activities should be laid out in the same way as LP activities, including a communication link through which issues can be reported at the corporate level. The assistance of corporate safety personnel should also be sought in developing related checklists, forms for problem identification and reporting, and other guidelines.</p><p>All of this information, when completed, should be compiled in a handbook and training guide. Sections should include member composition, meeting structure, team objectives, the communication process, and issue resolution.</p><p>Pick a leader. A store manager or highly motivated assistant manager should be selected to be the LP team’s leader—known as the sponsor. The sponsor’s role is to oversee and direct the team. That includes liaising with higher-ups regarding the team’s performance and findings. This person will also coordinate with other stores in the region on activities and trends.</p><p>Ideally, the person selected will be a top-performing assistant store manager—or someone with loss prevention and safety experience or who shows interest in these areas. This person should receive training from corporate LP on how to oversee the in-store team, how to provide support, how to keep the team on track, and how to accomplish the objectives without devoting more time or resources to these activities than called for in the corporate team directives.</p><p>Team sponsors should have that responsibility added to the key metrics on which they are assessed during their routine employee performance evaluation.</p><p>Corporate and or field LP supervisors in conjunction with the store manager need to pick strong hourly associate leaders for each team. These should be individuals who are respected in the stores, such as a well-regarded department manager or receiver. The rest of the team should be composed of associates selected by store management.</p><p>Depending on the size of each store, the LP team should be no smaller than three and no larger than eight members. I recommend this because above this number the labor expense begins to erode the return-on-investment model. If the retail environment includes a 24-hour work force, be sure to have representation on the team from all shifts.</p><p>To the extent possible, teams should be composed of long-term employees. The institutional knowledge of these associates is what enables an in-store LP team to succeed. Once a team is in place, wholesale changes should be avoided for the first year unless it is necessary due to ineffectiveness. Some new members should be rotated onto the team each year.</p><p>The team should be given something to mark its identity—for example, a special pin, badge, nameplate, or ribbon that makes team members recognizable to customers and other associates. Also, if at all possible, each of the team members should receive a small hourly pay increase for their added LP responsibilities. When members leave the team, a certificate of appreciation for their service or some other gift should mark the occasion. In this way, participation will be taken seriously by the team members and others, and good work will result.</p><p>Additionally, the LP team leader position has been used by several retailers as a management training step. Once an associate has proven his or her leadership capability as head of the team, the company places that person in the regular management training program.</p><p>Time management. The team should meet on a schedule set by the company—either weekly, biweekly, or monthly. When I develop these teams for clients, the team is directed to meet each week for one hour to set objectives and tasks, with one meeting per month dedicated to executing a loss prevention and risk management store audit, looking for issues such as high-end products that are left unsecured or an inoperable emergency door alarm, for instance. Another meeting structure might be a 10-minute meeting followed by 30-minute walk of the store to audit LP and safety issues, then a 15-minute resolution planning session, and a five-minute wrap-up.</p><p>The team sponsor needs to put limits on the time allocated to the LP teamwork—especially when a team is successful; otherwise, dedicated employees may overdo project work and shortchange their regular duties.</p><p>The team sponsor should also make sure that important boundaries are not crossed. For instance, at one store, an aggressive team leader embarrassed the other department managers with the LP team’s audit findings. This negatively affected store morale and caused the team leader to be replaced.</p><p>The team is empowered to identify operational breakdowns and to communicate them to local managers, but it should be done cordially and dispassionately. The team is not there to condemn peers or attempt performance coaching. This should be left to supervisors.</p><p>The team also has no enforcement role. It is most certainly not, nor should it see itself as, a replacement for shoplifting agents. The confrontation and apprehension of shoplifters is dangerous and must be left to authorized and trained staff.</p><p>Empowerment. When an audit turns up a problem, the team must be empowered to have it acknowledged, and they must see results. There is nothing more demoralizing for a team than to spot deficiencies, to follow the correct path to report the issue, and then see nothing happen in response because of a failure to act by authorities at the local store, regional, or corporate level.</p><p>But this isn’t just about team morale. Companies benefit when they act on team findings. When teams use the agreed upon line of communication to the corporation, and it responds, I have seen the correction of errors result in millions of dollars in revenue. At one store, for example, during an audit, the team found that a three-videogame multipack was being sold at the price of an individual game because of improper bar coding by the vendor. The team quickly alerted the company, which issued a recall of the product. In this case, the vendor was required to replace the bar codes on all existing stock and reimburse the retailer its lost revenue.</p><p>Senior management also needs to give the team feedback on what the team sends up the line. This should include acknowledgment of communications, information on when and how specific issues will be addressed, along with proper closure, and periodic commendations of the team for its good work. For example, the team’s success can be included in corporate newsletters and e-mails, or celebrated by regional management.</p><p>During my tenure as a field loss prevention supervisor for Walmart, we ran a district program recognizing the most effective in-store LP/safety team. The program caught the attention of founder Sam Walton, who implemented it companywide, leading to some of the lowest shrink levels the retailer had ever experienced.</p><p>The team should also be allowed to communicate within the store during store meetings, via internal e-mail, or in other ways that information is passed to associates. The team leader should review all communications to make sure they are targeted and clear.</p><p>My experience in the retail field and with clients over many years has proven that in-store LP teams, when properly deployed, are a powerful tool. During both good retail times and bad, effectively trained, managed, and supported teams bolster existing loss and risk prevention business processes, which in turn boosts the bottom line.</p><p>Keith Aubele, CPP, is president and CEO of Retail Loss Prevention Group, Inc., of Bentonville, Arkansas. He has previously been corporate vice president of loss prevention for Home Depot and divisional director of loss prevention for Walmart. He currently serves as the vice chair of the ASIS International Retail Loss Prevention Council.<br></p>GP0|#3795b40d-c591-4b06-959c-9e277b38585e;L0|#03795b40d-c591-4b06-959c-9e277b38585e|Security by Industry;GTSet|#8accba12-4830-47cd-9299-2b34a4344465